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Pampa Energia SA (NYSE:PAM)
Beneish M-Score
-2.99 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Pampa Energia SA has a M-score of -3.19 suggests that the company is not a manipulator.

PAM' s Beneish M-Score Range Over the Past 10 Years
Min: -5.7   Max: 1.23
Current: -2.99

-5.7
1.23

During the past 12 years, the highest Beneish M-Score of Pampa Energia SA was 1.23. The lowest was -5.70. And the median was -2.91.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Pampa Energia SA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0257+0.528 * 0.4793+0.404 * 0.9441+0.892 * 1.0123+0.115 * 0.8256
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2884+4.679 * -0.0856-0.327 * 0.9225
=-3.19

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $252.9 Mil.
Revenue was 202.642544909 + 193.438067463 + 192.738755286 + 194.362062917 = $783.2 Mil.
Gross Profit was 3.57806068728 + -0.509547130358 + 13.9011531004 + 2.46988656298 = $19.4 Mil.
Total Current Assets was $800.5 Mil.
Total Assets was $2,546.8 Mil.
Property, Plant and Equipment(Net PPE) was $1,352.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $75.5 Mil.
Selling, General & Admin. Expense(SGA) was $216.4 Mil.
Total Current Liabilities was $1,018.3 Mil.
Long-Term Debt was $546.1 Mil.
Net Income was 4.28288822948 + 6.72173003907 + 102.264589499 + 85.1335516314 = $198.4 Mil.
Non Operating Income was -16.9696776321 + -22.4241457107 + 61.4732927424 + 16.3640509882 = $38.4 Mil.
Cash Flow from Operations was 89.9869180945 + 123.104715787 + 89.8071362972 + 75.1520290025 = $378.1 Mil.
Accounts Receivable was $243.5 Mil.
Revenue was 192.576077919 + 183.378461538 + 180.528061546 + 217.144840644 = $773.6 Mil.
Gross Profit was 5.5790473928 + -0.673723076923 + 14.2450498171 + -9.9458819817 = $9.2 Mil.
Total Current Assets was $530.6 Mil.
Total Assets was $1,830.4 Mil.
Property, Plant and Equipment(Net PPE) was $999.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $45.6 Mil.
Selling, General & Admin. Expense(SGA) was $165.9 Mil.
Total Current Liabilities was $763.1 Mil.
Long-Term Debt was $455.7 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(252.850898184 / 783.181430575) / (243.508849032 / 773.627441647)
=0.32285099 / 0.31476242
=1.0257

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(-0.509547130358 / 773.627441647) / (3.57806068728 / 783.181430575)
=0.01189784 / 0.02482126
=0.4793

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (800.522850792 + 1352.0490731) / 2546.82630846) / (1 - (530.627865542 + 999.605535099) / 1830.36667063)
=0.15480223 / 0.1639744
=0.9441

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=783.181430575 / 773.627441647
=1.0123

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(45.6313064299 / (45.6313064299 + 999.605535099)) / (75.4891748166 / (75.4891748166 + 1352.0490731))
=0.04365643 / 0.05288067
=0.8256

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(216.386870026 / 783.181430575) / (165.907539555 / 773.627441647)
=0.27629214 / 0.21445405
=1.2884

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((546.112440573 + 1018.29169459) / 2546.82630846) / ((455.714574177 + 763.064021855) / 1830.36667063)
=0.61425631 / 0.66586582
=0.9225

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(198.402759398 - 38.4435203878 - 378.050799181) / 2546.82630846
=-0.0856

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Pampa Energia SA has a M-score of -3.19 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Pampa Energia SA Annual Data

Jun06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.46250.49210.75131.47160.94561.54141.10181.0771
GMI 1.59381.0931.0542.29011.8956-1.0086-1.77722.9801
AQI 0.26911.08390.77042.14650.78030.59691.15070.8701
SGI 1186.27912.47460.92671.1281.120.61850.8620.7625
DEPI 3.20070.50331.08850.86221.01251.1361.06771.0545
SGAI 0.03550.88341.14781.07540.94341.76711.1971.2883
LVGI 4.9181.11490.93571.26571.15641.25151.00470.9263
TATA -0.0243-0.0633-0.0942-0.135-0.1453-0.0662-0.1315-0.1103
M-score 1,054.26-1.92-3.27-1.53-2.76-4.05-4.56-2.16

Pampa Energia SA Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.99211.4431.42461.54961.38281.20591.12681.06461.02571.6201
GMI -1.3405-0.9654-0.566415.914-2.3556-1.7869-0.6049-0.0280.47931.9937
AQI 0.76010.59690.57160.86880.79621.15071.14481.0730.94410.8701
SGI 0.80250.66070.61870.68680.73260.78760.88710.93161.01230.9692
DEPI 0.75270.78690.90461.00441.37591.16661.33121.15740.82560.8626
SGAI 1.3491.72711.6951.34371.2711.23881.24531.34511.28841.2158
LVGI 1.2291.25151.28791.18741.14411.00470.86850.8820.92250.9263
TATA -0.0933-0.072-0.0592-0.1588-0.1804-0.1378-0.1117-0.1355-0.0856-0.1382
M-score -4.60-4.14-3.934.70-5.12-4.56-3.74-3.63-3.19-2.14
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